"Have we reached the bottom of housing prices?" Being in my profession as you can imagine I get that question alot. In the past two years the answer has always been no, but I'm happy to report that I feel we are getting very close.
I base my conclusion on a number of factors.
- Word of mouth. A number of my referral partners are reporting an increase in buying activity.
- Availability of listings in the $140K - 160K range. Right now there 40 such properties in Stafford County. This range almost directly ties to what people are paying in rent right now.
- Personal experience. In my subdivision (Park Ridge in Stafford) there are currently about 12 listings. 5 of them have sold signs on them. 42% sales rate might not sound like much but it is significantly better then the 10% I had been seeing.
So where do we go from here? I think by the end of 2008 we will have stopped the bleeding and will begin the long climb back up. It will take a number of years to get back to 2005 levels, but I'm confident it will happen.
Comments(2)